estion 15 Suppose the public holds no cash, & all banks hold no excess reserves. The total money supply of the Kingdom of Duriland increases by $500 after her central bank increases the cash in circulation by $100. What is the reserve ratio? 10 percent None of the other answers is correct. 20 percent 5 percent t does not have sufficient information to answer this question. O0O0O

estion 15 Suppose the public holds no cash, & all banks hold no excess reserves. The total money supply of the Kingdom of Duriland increases by $500 after her central bank increases the cash in circulation by $100. What is the reserve ratio? 10 percent None of the other answers is correct. 20 percent 5 percent t does not have sufficient information to answer this question. O0O0O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which volume of OMOs is required to keep money supply unchanged, if demand for borrowedreserves increases by $0.5 trillion and the central bank decreases required reserves ratio from 10 to7% (the volume of required reserves created by the banking system was 1.5 trillion)? Use the conceptof a money multiplier and currency ratio of 0.2 and excess reserves ratio of 0.03.
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Typed and correct answer please. I ll rate
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